Project Foldout - FFM Capital Inc.

Development
Name
Builder
Gates of Nobleton
King Country
Estates
Tribute
Aspen Ridge
Country Wide Homes
Rosehaven Homes
Nobleton Grand
King Estates
According to the Canadian Mortgage and Housing Corporation (CMHC), 189,703 singledetached homes were completed in the Toronto Census Metropolitan Area (CMA) between
2000 and 2012. According to RealNet Canada Inc, 1,564 single-detached units were pulled
from the market (discontinued by that developer at that time or “closed” per the RealNet
definition) during that period. So, 189,703 units of the total 191,267 units available were built,
for a success rate of 99.2%. That is quite an achievement.
Fandore Homes
Nobleton is both a great place to live and a great place to develop. The GTA’s top
homebuilders and developers have already made significant investments into this
neighbourhood. Fortress, Tercot and Cityzen are pleased to have also entered
this prime market.
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Park-Future
Medium Density Area
SEASONED DEVELOPERS ARE ALREADY
BUILDING IN NOBLETON
Wetland
2.It’s the wrong product for the market. The good thing about low rise is that it offers such
great flexibility. A developer can change the floorplans very easily; go back to the
municipality and change the lot frontages, lot depths or change the type of home
(detached/semi/town) and very quickly to react to shifts in market demand.
Village Core
1.The builder over prices the home and it doesn’t sell. Taking the home off the market,
rebranding and re-pricing it for sale at a later date, typically solves this.
Residential
Rural Area
3.The sanitation and sewer services required for development already reach the
property line. Water is available across the street on the west side of Highway
27 and the sanitary connection is present at the property line on the properties
south side.
Park-Future
2.King Township has begun the Official Plan review process. During this process
the Township will have to address where future growth will take place. The
developers are ready to demonstrate why this parcel is uniquely positioned for
inclusion in the expansion and brought into the urban boundary.
Rarely is a low-rise home never built, and when it does happen, It’s usually, only for a time.
Lets look at the reasons why this may happen:
Park-Existing
There is a 99% Success Rate for Low-Rise Single Detached Homes in Toronto CMA
Natural Heritage
Institutional
Highway Service Commercial Area
Commercial
Business Area
Three important factors make the land a good candidate for rezoning:
Agricultural Area
The land sits within the Community Plan and just outside of the urban boundary
zoned as rural not agricultural.
ESTATES OF NOBLETON IS THE NEXT PLACE
TO GROW
(Source: MMAH, February 2003)
Nobleton is close to Toronto offering the best of suburban living with easy access
to major highways to get around easily. King Township has more green space and
hiking trails than any other municipality and offers open space living to buyers
wanting easy access to all parts of Toronto.
Nobleton Urban Area Boundary
Community Plan Boundary
Oak Ridges Moraine Settlement
Area and Amendment Boundary
NOBLETON IS A VILLAGE COMMUNITY
Vaughan is a burgeoning city above Toronto and a few minutes north of Vaughan
is Nobleton, a prestigious community known as “the Oakville of the North”.
Nobleton is close to Highway 400 with well regarded local schools and shopping,
and plenty of programs and services for families. Known for its estate quality
living, Nobleton is a highly desirable address for discerning buyers.
1
Fortress Real Developments Inc. is a Canadian real estate
development company that seeks out and analyses opportunities
in major Canadian markets. Fortress engages in large scale, blue
chip development deals with established developers and
builders possessing decades of experience. The company is
focused on quality projects with recognizable alpha in residential
low-rise, high-rise, commercial, industrial and land servicing
opportunities.
FORTRESS REAL DEVELOPMENTS
Existing Roads
2
LOW-RISE IS LOW-RISK
Deferred Residential
1.The land is located on a corner piece adjacent to an existing development,
making it the next logical place to expand the urban plan.
3
3.The Developer decides to sell off lots or blocks to another builder/developer. Sometimes
it makes more financial sense to sell than to build. Whether it’s a few lots, a block or an entire
project. Often a developer will do whatever offers the greatest return in the shortest
period of time.
Schedule 1 – Land Use Plan
50
ACRES SITTING
JUST OUTSIDE THE
URBAN BOUNDARY
150
INGLE
DETACHED
HOMES
ESTATES OF
THE TOWN ABOVE VAUGHAN
WHY NOBLETON
NOBLETON COMMUNITY PLAN
DEVELOPMENT PARTNERS
THE NEW HOME MARKET IN NOBLETON
“Great sites to develop low-rise communities are hard to come across and we
feel Estates of Nobleton will fill a need that has been created over the last
few years. We are excited to partner with Fortress and Tercot on this project,
both who will bring unique expertise to it.”
– Sam Crignano, President of Cityzen
PRESENTS
CITYZEN
ESTATES OF NOBLETON
Cityzen Development Group and its sister company Dominus Construction Group are
a multifaceted Real Estate Developer and Builder respectively. Cityzen-Dominus takes
a comprehensive approach, providing complete real estate services that span the
entire spectrum of real estate sectors. The company’s outstanding management team,
with extensive backgrounds in construction and development management, are
focused on delivering complex and challenging masterpiece projects on-time and
on-budget.
MARKET
The new ground-oriented housing market in the Toronto CMA remains extremely
strong, with record-low levels of unsold supply and double-digit price inflation. The
low-rise market is even stronger in York Region with just 1% of completions unsold in
the Region, and prices for single-detached homes increasing 16% year-over-year. King
Township is just as hot (or hotter) with essentially zero standing inventory and
appreciation for new single-detached homes averaging 27.6% per year over the past
three years, driving pricing to over $1 million for the average house.
LOCATION
The adjacent project to the subject site, King Country Estates has been very successful
and accounted for nearly half of the new housing sales in the Township over the past
three years, with 300 plus sales of upscale single-family homes. The subject site will
offer the same high-quality home on generously sized lots, several of which will back
onto environmentally protected woodlands.
Sam Crignano, the Founding Partner and President of Cityzen Development Group
has over 28 years’ experience in real estate development, with emphasis on large,
urban and suburban high-rise condominium developments. Under Sam’s leadership
for the last 13 years, Cityzen has established itself as one of the most recognizable
names in high-rise development in Ontario. Sam was instrumental in bringing to market
such noted successes as Pier 27, The L Tower and the Absolute community. In addition
to these projects, Cityzen has experience with developing and building low-rise
OUTLOOK
With the expectation that available supply will continue to dwindle in the CMA and
York Region in the coming years, the subject site is likely to be as successful as the
adjacent communities due to limited supply at a price significantly higher than being
offered in today’s market.
“This project lends to all the strengths and experience I have gained in my
30 years in the business. Estates of Nobleton will deliver quality designed
homes with superior finishes while providing exceptional customer service,
on a large subdivision scale.”
– Joe Valela, President of Tercot Group.
Figure 1 shows completed and unabsorbed freehold ground-oriented supply for York
Region and King Township
Luxurious Suburban Living
TERCOT
Figure 2 presents data on the average price of an absorbed new single-detached house
in York Region for 2010, 2011 and 2012, and through the first 11 months of 2013.
Figure 1
Ground-Oriented Freehold Housing Units
Completed & Unabsorbed
York Region & King Township: Year End 2010-2012 & Nov 2013
DEVELOPMENT
Tercot Group Limited is headed by Joe Valela, a 30 year veteran of residential home
construction and building business. He has built subdivisions, condominiums and
custom homes across Southern Ontario and specializes in complex land assemblies
and multi-party stakeholder acquisitions, planning and development, project
management, joint venture and bank financing, project marketing, sales and customer
service. Joe founded Valemont Homes in 1990, a builder best known for upscale
single-family developments in Mississauga. He became the CEO of Tercot in 2013.
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DEVELOPED WITH:
symbol
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www.facebook.com/FortressRDI
|
www.fortressrealdevelopments.com
|
www.twitter.com/FortressRDI
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King Township
York Region
$900,000
35
King Township
$800,000
30
$700,000
$600,000
15
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REAL DEVELOPMENTS
York Region
20
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He is a past president of BILD (Toronto Home Builders Association) where he had a weekly
guest editorial column in the Toronto Star, Toronto Sun and the Globe and Mail, and
authored numerous articles on home builder issues in both the local and national
media. He has also served as vice president of the CHBA, and been a Tarion board member.
$1,000,000
45
25
words
Figure 2
Average Price of Absored Single – Detached Homes
York Region & King Township: 2010 to 2013 YTD
10
$500,000
5
DEVELOPMENT
$400,000
0
2010
2011
2012
Source: CMHC
Nov-13
2010
2011
2012
2013 YTD
Source: CMHC YTD = Jan-Nov
CITYZEN SPECIALIZES IN DELIVERING COMPLEX AND CHALLENGING PROJECTS
ABSOLUTE
TOWER
PROPOSAL
An international design competition was held
to determine the architectural design of this
outstanding building.
MISSISSAUGA
600
REGISTRATIONS
92
SUBMISSIONS
L-TOWER
PROPOSAL (JUNE 2007)
8 THE ESPLANADE
TORONTO
57
6.3
TIMES
HIGH
(MAXIMUM
ALLOWED – 46)
THE SITE AREA
(MAXIMUM
ALLOWED – 6.0)
Mississauga
OUT
“From the very beginning, there was
doubt whether this building could
ever be built…”
- Sam Crignano, President of Cityzen
“Obviously, structurally that was
the biggest challenge. Every floor
was different.”
– Mark Zwicker, Project Architect
“From the ground level to the 56th
floor, basically it was like building
a floor-by-floor project.”
– Anthony Pignetti,
Dominus Construction Group
1.The site was designated historical. In addition it is
located within 2 different conservation districts:
• Union Station Conservation District
• St Lawrence Conservation District
2.The site fronts on 2 major streets Front Street & Yonge
Street and needed to provide a suitable transition
height between the Financial District and the St.
Lawrence Neighbourhood.
3.A number of other objections and considerations from
the community including but not limited to how the
building will affect other buildings and parks in the
area (shadowing, etc.), parking for both vehicles and
bicycles and how the development will impact on the
pedestrian PATH system.
SOLD
IN THE
FIRST
WEEKEND
(Cityzen)
PROJECT STATS:
Concrete Strength: 70 MPA
Concrete Volume:
65,000 Cubic Meters
Rebar: 9210 Tonnes
Balcony Railings: 15.6 Kilometers
1ST PLACE SKYSCRAPER
OF THE YEAR
CHALLENGES
DENSITY OF
STOREYS
SOLD
CHALLENGES
SUCCESS (TO BE COMPLETED IN AUGUST 2014)
“You’re building a very
significant new
condominium building above
a heritage building. That’s
complicated, the financing
is complicated and the
neighbourhood consultation
was complicated.
– David Miller, Sitting Mayor
of Toronto (2009)
The L Tower is the evolution
of 21st century living. An
iconic landmark designed by
celebrated architect Daniel
Libeskind, the residential
tower rises 57 storeys and is
home to 600 suites, graced
with high-end luxurious
features and finishes.
OVER
SOLD
50% FIRST
OF SALES
IN THE
ACHIEVED
MONTH
70%
SOLD
IN THE
SOLD
MONTH
(RealNet)
L-Tower under construction
Toronto
PIER 27
PROPOSAL
QUEENS QUAY
EAST – TORONTO
7
BUILDINGS +
PUBLIC SPACE
CHALLENGES
1.The land fronts 2 major roads, Yonge Street and the
Queen Quay as well as Toronto’s highly contentious
waterfront.
2.P arts of the land were designated as public realm
space and the proposal requested the rezoning of
portions of land from “parks” to “mixed use”.
3.A 1 year long application process to reorient the
buildings in phase 1 was struck down, forcing the
developer to appeal to the OMB, where after another
year the developer was granted consent to move
forward.
4.The proposal involved a land swap with Waterfront
Toronto, and working with Red Path Sugar Ltd, (who
owned the adjacent site) to plan for and take into
account air quality, noise levels and vibration studies.
SUCCESS
‘Cool project’ or
another affront on waterfront?
Said the Toronto Star,
May 12, 2007
A breathtaking and
unique landmark, Pier 27
is an architectural
masterpiece, right on the
shoreline of Lake Ontario
and at the foot of Yonge
Street. The striking
SkyBridge spans from
one tower to the other,
housing the most
prestigious suites.
“It’s definitely a problem
because it continues with
the highrises near the
water’s edge,” said Deputy
Mayor Joe Pantalone.
UNITS FIRST 6
(RealNet)
“With construction on Pier 27 well
underway at the foot of Yonge St.,
and a recently acquired site on Cherry
St., Cityzen will continue to have a
leading role in the redevelopment of
Toronto’s waterfront.”
– The Toronto Star, May 12, 2007
Toronto
ESTATES OF
NOBLETON
Toronto
NOBLETON
THE PROPOSAL
REZONING
PRE-SALES
LAND SERVICING
Approximately 34 of the 50 acres will be
developed to accommodate 150 homes ranging
from 3,500 sq ft to 4,000 sq ft in size. Premium
sized lots will offer striking views of natural
wetlands, woodlots and parklands. As the next
developable parcel adjacent the urban
boundary, the site is uniquely positioned for
intensification. Agreements are already
negotiated to bring in site services (sewer and
water) from the adjacent parcel to the south.
While the land is within the community
plan, the developer will have to have the
land zoned residential before moving
forward.
With approval in place the developer
will begin selling units.
The land is prepared for construction of
the community, including grading of the
land and the building of roads and sewers.
DRAFT PLAN
The Draft Plan is where the plan for
the Estates of Nobleton Community is
described in detail and the township
specifies which portions of the land are
developable.
“We know there is a huge demand for
single family homes and understand
that there is very little land left for
development, so when the opportunity
presented itself we had really no
choice but to jump on it. We think
we can get approvals for this project
in the next 2 to 3 years”
– Sam Crignano, President of Cityzen
UNDER CONSTRUCTION
Cityzen and their team of top tradespeople
will build heritage inspired homes with
a target sales price of $1M based on
today’s market. Downward pressure on
available low rise land supply may
increase the sale prices as demand
growth and inventory shrinks.
“K ing has a lot to offer. We have a
variety of parks, recreation and
cultural facilities including three
arenas, Centennial Mountain Biking
Park and Cold Creek Conservation
Area. There are community and cultural
facilities such as the King Township
Museum, Community Halls and four
full-service public libraries…we have
more green space and hiking trails
than any other municipality.”
– Mayor Steve Pellegrini, October 2012
In a letter to new residence of the
Township of King.